Abstract: We extend prior research on the value relevance of accounting information for loss-making firms by allowing the coefficient of book value to vary across three distinct set of loss-making firm observations in our valuation model. Our key findings are, first, that book value is a less important determinant of equity value for either high RD and/or (ii) a proxy for expected future normal earnings. Our work suggests that this prior literature does not fully capture the valuation role of book value for loss-making firms. Second, we also find that dividends are value relevant, but generally only when the valuation role of book value is contextualised by allowing its coefficient to vary across high R&D-intensive firms, and dividend-paying, loss-making firms.

Abstract: Acknowledgments. Foreword. Preface. Introduction: Standards of Value. 1 Common Standards and Premises of Value. Common Standards and Premises. Price, Value, and Cost. Defining a Standard of Value. Premises of Value. Common Standards of Value. Fair Market Value. Fair Value. Investment Value. Intrinsic Value. Book Value. Common Operational Premises Underlying the Standard of Value. Going Concern. Liquidation Value. Other Issues. Fair Value in Alternate Contexts. Fair Market Value in Alternate Contexts. Standards of Value in the International Context. Summary. 2 Fair Market Value in Estate and Gift Tax. Introduction. Common Definitions of Fair Market Value. History of Fair Market Value. Elements of Fair Market Value. Price at Which a Property Would Change Hands. Willing Buyer. Willing Seller. No Compulsion to Buy or Sell. Reasonable Knowledge of Relevant Facts. Common Discounts. Summary. 3 Fair Value in Shareholder Dissent and Oppression. Introduction. Fair Value. Early References to Fair Value. Fair Value as Defined by Various Authorities and Statutes. Dissentera s Rights. Overview and History. Growth in Popularity of the Appraisal Remedy. Context of Modern Appraisal Rights. Oppression Remedy. Development of Oppression Remedy. Alternative Remedies. Context of Oppression Remedy. Freeze-Outs and Squeeze-Oouts. Recognizing Oppression. Reasonable Expectations. Breach of Fiduciary Duty. Heavy-Handed and Arbitrary or Overbearing Conduct. Standard of Value in the 50 States. Breaking Down the Components of Fair Value. Before the Effectuation of the Corporate Action to Which the Shareholder Objects. Excluding Any Appreciation or Depreciation in Anticipation of the Corporate Action Unless Exclusion Would Be Inequitable. Current and Customary Valuation Techniques. Discounts and Premiums. Level of Value. Other Shareholder Level Discounts. Entity-Level Discounts. Control Premiums. Extraordinary Circumstances. Equitable Adjustments. Delawarea s Entire Fairness. Consideration of Wrongdoing in Calculating Fair Value. Discounts Used as an a Equitable Adjustmenta . Damage Claims. Fair Value and the Minority Shareholder. Summary. 4 Standards of Value in Divorce. Introduction. Marital Property: General Background and History. Identification of Marital Property and Separate Property. Relationship between Valuation and Identification of Intangible Assets. Appreciation on Separate Property. Premises and Standards of Value in Divorce. Premises of Value. Standards of Value. Premises of Value Revealed through the Valuation of Insurance Agencies. Concepts of Value under the Two Premises. Standards of Value in Divorce among the 50 States. Lack of Statutory Insight. Revealing Standard of Value through Case Law. Toward a Standard of Value Classification System. Value in Exchange. Goodwill. Lack of Control and Marketability Discounts under Value in Exchange. Buy-Sell Agreements under Value in Exchange. Value to the Holder. Goodwill. Shareholder Level Discounts under the Value to the Holder Premise. Buy-Sell Agreements under Value to the Holder. Summary. 5 Fair Value in Financial Reporting. Introduction. Fair Value in Financial Reporting: What Is It? History of Fair Value in U.S. Accounting Literature. Application of the Fair Value Standard to Business Combinations. Application of the Fair Value Standard to Asset Impairment Tests. Interpretation of Fair Value Compared to Other Standards of Value. Fair Value in Financial Reporting versus Fair Value in Dissentersa Rights Cases. Fair Value in Financial Reporting versus Investment Value. Fair Value in Financial Reporting versus Fair Market Value. Audit Issues. Summary. Sources of Information. Appendix A International Business Valuation Standards. Appendix B Fair Value in Dissent and Oppression Chart. Appendix C Standard of Value Divorce Chart .

Abstract: Purpose – The purpose of this paper is to transfer the concept of market‐consistent embedded value (MCEV) from life to non‐life insurance. This is an important undertaking since differences in management techniques between life and non‐life insurance make management at the group level very difficult. The purpose of this paper is to offer a solution to this problem.Design/methodology/approach – After explaining MCEV, the authors derive differences between life and non‐life insurance and develop a MCEV model for non‐life business. The model framework is applied to a German non‐life insurance company to illustrate its usefulness in different applications.Findings – The authors show an MCEV calculation based on empirical data and set up an economic balance sheet. The value implications of varying loss ratios, cancellation rates, and costs within a sensitivity analysis are analyzed. The usefulness of the model is illustrated within a value‐added analysis. The authors also embed the MCEV concept in a simplified...

Abstract: This paper examines the value relevance of earnings and book value of equity (individually and in aggregate), relative to price and return models, for Jordanian industrial companies for the period 1992 to 2002. The main findings of this paper are twofold. First, relative to price model, the value relevance of both earnings and book value (individually) have increased, whilst the value relevance of earnings increased and book value became irrelevant in their combination. Secondly, relative to return model, the value relevance of earnings either individually or in aggregate has increased while that of book value has declined. Overall, it is found that earnings are more important in explaining the variance in share price and return than book value. Furthermore, the results indicate that earnings and book value individually are more value relevant in price model. In contrast, these variables in aggregate are more value relevant in return model. The study shows that earnings help more in explaining market values in Jordanian industrial companies. This paper is the first in using price and return models in one study in Jordan.

Abstract: A new physical currency and any electronic token thereof is exchangeable for tangible goods or intangible services and has a value that is stabilized by an underlying stock portfolio or other asset having intrinsic value, the short term market value of which is arbitrated directly or indirectly by a central value bank

Abstract: The purpose of the study was to present empirical evidence on the value relevance of accounting information in Jordan; whether institutional factors influence this value relevance and to determine which share price proxy is more reliable in indicating value relevance. The study examines the influence of institutional factors (foreign ownership, trading volume, financial disclosure time, financial disclosure level, number of shareholders, listing status, company’s age and type of industry) on the value relevance of accounting information (earnings, book value and cash flows relative to three share price proxies including average annual share price, annual closing share price and share price after a three-month period following the financial year-end) for Jordanian services and industrial companies during the period from 2004-2009. The study found that book value has the greatest value relevance and the best predictor for firm value. The value relevance of earnings and book value is greater for companies having foreign ownership, larger trading volume, larger shareholder numbers that conform to financial disclosure time, that are listed on the main board and that are older in age. Value relevance of book value is greater for companies complying with disclosure requirements and for services companies. Finally, annual closing share price proxy is more reliable in detecting the value relevance of accounting information. The findings suggest that market participants might be able to extract the firm value through the aforementioned institutional factors. The study extends the valuation model by including cash flows together with earnings and book value. The findings demonstrate that there is a shift away from earnings towards book value as the basis of firm valuation.

Abstract: The measure of the economic value has become a widely debated issue because, nowadays, more and more companies are focusing on creating value for their shareholders. Due to the fact that the traditional methods are not strongly related to the actual value created, the study focuses on finding out if EVA is a more accurate method and more successful than the ones companies currently use. EVA promises an effective way to manage shareholder value. It aligns management’s objectives with those of the shareholders’, improves accountability and enables better performance analysis. Therefore, it is not surprising that EVA, as a management tool, is in the spotlight.

Abstract: SUMMARY This study examines the nature of net present value. It defines the economic content of the net present value and mathematically proves that definition is correct. This economic content inducts that the net present values are not comparable. The study systematically eliminates the distortion affects. The net present value transforms into a special kind of rate, namely, the modified difference between the factual and the required rate of return. The ranking list according to this transformed net present value corresponds to the list according to the internal rate of return. This is a new cognition and a very important correspondence.

Abstract: This study aims at identifying the evolution of some of the key value based indicators in the case of Romanian listed banks. In particular we compute value based measures like Residual Income RI and Market Value Added MVA but also traditional measures like Earnings per Share EPS and Price to Earnings ratio PER in order to have a detailed view on the evolution of shareholder value creation in the banking industry for last seven years 2005-2011. As results suggest BRD represents the greater shareholder value creator in the case of the listed banks. On the other hand EBS is the greater value destroyer. The other listed banks TLV and BCC can be characterized as value preserver as they don’t destroy nor create shareholder value.

Abstract: The recent financial crisis has raised challenges to market-consistent valuation, both in its implementation and application. These include both commercial and technical challenges. The whole concept of mark-to-market accounting has been questioned in some quarters.There have been commercial challenges in deciding how to assess business strategies given recent volatile market-consistent results, including the implications for ALM and new business pricing. Industry-wide, macroeconomic concerns have been raised regarding procyclicality.This paper recognises these commercial challenges and highlights how a combination of different forms of management information covering both market-consistent and other measures can help in making decisions. This paper sets out some possible approaches to mitigate procyclicality.There have been technical challenges in:– assessing how to value instruments in markets which are or have become illiquid– selecting an appropriate ‘risk-free’ or reference rate– deciding whether and how to make additional allowance for the liquidity premium or own credit risk– the calibration of stochastic models used to value embedded financial options and guarantees– assessing an appropriate allowance for non-hedgeable risk.This paper discusses these technical challenges. The paper proposes a way forward in some areas, taking into account the recent dislocation of the financial markets and drawing on recent Solvency II, IASB, FASB and MCEV developments.

Abstract: In the European insurance industry, regulatory and reporting frameworks are currently subject to far-reaching reforms. We focus on four of these frameworks, namely the Solvency II framework, insurance guaranty systems, the proposed IFRS 4 Phase II international accounting standards, and Market Consistent Embedded Value reporting. We present these frameworks, analyze them from the insurance company's management, investors and policyholder perspectives, and compare them. Our analysis implies that the four frameworks need to be considered jointly, due to various interre- lations and interactions. We argue that a coordinated introduction will be necessary to ensure that the regulatory burden is reduced and synergies can be utilized in the event of all four frameworks being implemented as planned. Furthermore, we analyze the challenges of a holistic, comprehensive approach to insurance reporting and regulation and its implementation in order to achieve the goals set by the frameworks.

Abstract: It is important for the company to have its high value because it resembles the spirit of shareholders increasing wealth. The higher share prices make the higher the value of company stock. This study tries to examine the impact of the implementation of corporate governance on company value and also explores the impact of firm value to the implementation of corporate governance. This testing carried out on the top ten corporate governance perception indexes (CGPI) with other companies that are not in the top ten, but still within the same industry on company value. This study examined the different value of the company as measured by Market to Book Value Equity (MTBVE), Market to Book Value Asset (MTBVA), Tobin's Q, the ratio of Value to book value of PPE (Property, Plant, and Equipment), the Ratio of Value to Depreciation Expense, Capital Expenditure to Book Value Asset (CAPBVA) and Capital Asset Expenditure to Market Value (CAPMVA). The result shows that only the value of MTBVE and the variable MTBVA among the top ten companies CGPI and does not in the top ten showed a difference. Therefore, the company value as indicated by MTBVE and MTBVA of the company receiving the top ten corporate governance index is higher than companies that did not receive.

Abstract: This study examines the value relevance of the voluntary embedded value (EV) disclosures by publicly listed British life insurers pre and post the mandatory adoption of International Financial Reporting Standards (IFRS) in 2005. It provides evidence for the first time that the voluntary European embedded value (EEV) and market consistent embedded value (MCEV) disclosures are value relevant and have incremental information content over and above the statutory accounting information. It also shows that the changes in the methods by which EV numbers are calculated do not have any impact on the value relevance of EV disclosures.

Abstract: Purpose – Building on the property rights framework, the purpose of this paper is to frame the cooperative business model in terms of strategic options held either by the board or by members. Options that are analyzed include growth and restructuring, dividend allocation, member entry and exit, and member embedded value options.Design/methodology/approach – Empirical estimates of the options' financial value, as well as sensitivity analyses, are presented for a stylized example using historical data and Monte Carlo option‐pricing methods. Attention is paid to the effect of member age, discount rate and business operation size.Findings – Results suggest that the board's growth options can be substantial, while member options generally have small but nontrivial value. Implications for the stability of membership are drawn.Practical implications – The financial or economic value of strategic options in agricultural cooperatives can be significant, and decision makers may benefit from accounting for their pre...

Abstract: SUMMARY One of the oft-quoted theorems of finance is that decision making based on net present value will lead to the maximisation of shareholder value. The study analyses the reality background of this theorem within the disciplinary borders of business economics. Since finance is based directly on the bases of microeconomics, the study touches upon the presentation of the different disciplinary frames of business economics and microeconomics. The paper demonstrates that the economic content of shareholder value of a firm calculated from its business value and the project’s net present value fundamentally differ from one another. With their summing up, in general cases, no index emerges with meaningful economic content. Moreover, only in exceptional cases does the ranking based on the net present value lead to the maximization of the shareholder value.

Abstract: A method of managing an insurance value chain is disclosed. A specification of an insurance policy having a set of attributes is received. Sets of values corresponding to the set of attributes are received. The sets of values are derived from negotiations with stake holders of an insurance value chain. Versions of the insurance policy are generated. Each of the versions of the insurance policy corresponds to a unique one of the sets of values. An aggregation of information regarding the versions of the insurance policy is presented via a user interface of an insurance value chain application.

Abstract: Financial consulting agencies and stock markets, generally, have used lately new approaches to measure company’s economical and financial performances. The principle that lays at the basis of these new approaches is represented by the creation of value for shareholders, the increase of their value, but not in any conditions. The accent is laid on the source of the new value that was created, on the value quality and, especially, on the risk taken, the traditional measures of performance being replaced by the term financial value added. From the category of financial added values the most frequently used for evaluating management performances is the economic value added, which has a significant impact on the organizational behavior. Economic value added is superior to any traditional measure used to evaluate value or performance because it recognizes the cost of invested capital and implicitly through it relates to the risks of a commercial company’s activity. The objective of maximizing economic value added is the consequence of a financial strategy, while the maximization of measures based on profitability may lead sometimes to unwanted situations. In this paper I proposed a model of factorial analysis of the economic value added which includes the key factors for creating economic value added. The main advantage of this model is represented by the identification of growth engines for economic value added.

Abstract: The XXI century was marked by the convergence and harmonization, this century is distinguished in that it lays the foundation of accounting actuarial, which is characterized by up to date values and actuarial calculations . Actuarial accounting is reflected best in insurance system. In the market economy, insurance system is on one hand a means of protecting the business and property of citizens, on the other hand a business that generates profits. From this context, we can say that the subject of actuarial accounting is the measurement and recognition of assets and result of the change in time value of money. Time is an important variable considered in any economic decision investing and financing.

Abstract: A computer system for processing data relating to a life insurance policy issued by an insurance company to an owner includes a data storage device storing data relating to the life insurance policy, including data indicative of a face amount, a benefit account, an investment account and a death benefit factor, and a processor configured to access data indicative of the face amount, a value of the investment account, a value of the benefit account and a value of the death benefit factor; determine a first value based on a sum of the face amount and the value of the investment account; determine a second value based on the benefit account value, the investment account value and the value of the death benefit factor; and determine an amount of a death benefit of the life insurance policy to be the greater of the first value and the second value.

Abstract: At the moment, in indonesia; the usage of mutual fund’s net asset value measurement which is refers to mark to market is still limited Mostly, it is using historical cost In fact net asset value of mutual funds that invested on stocks and obligations, which is daily published on mass media, is not as high as shown It is caused of the value of obligations that lower than historical cost Since net asset value is not using fair market value or market value, it inflicted a loss upon the investors According to mutual fund regulation that released by bapepam and psak, the investment manager required to use fair market value or present value for net asset value measurement

Abstract: Increase in the value for the key stakeholders, i.e. shareholders, is one of the most important goals of a modern corporation. A new concept based on the value, so-called, Economic Value Added - EVA is a derived internal measure of value creation that helps managers in their decision-making processes which incorporate two basic principles of finance: the maximization of shareholders' wealth and that the value of the company depends on investor expectations that the future profits will exceed the cost of the capital. EVA is directly related to the external performance of the company in the capital market, i.e. Market Value Added - MVA. MVA is the assessment of the capital markets, within a specified period of time and reflects the success with which the company invested capital in the past and expectations of the success of performance of investing capital in the future, which affects the value of the company, and thus a shareholder value, as well.